During the April-June period, electronics exports from India experienced remarkable growth, surging by over 56 per cent and reaching Rs 57,220.24 crore, compared to Rs 36,533.18 crore in the same period the previous year. This growth has propelled electronics to become the fourth-largest item exported from India in the June quarter, outpacing the top 30 exported categories.
Interestingly, electronics is the only sector among the top five export categories that recorded growth during this period.
Experts predict that at this pace, electronics might soon surpass the gems and jewellery segment and emerge as the third-largest category of exports in the upcoming quarters. The electronics category has already overtaken chemicals and drugs, as well as pharmaceuticals, rising from the sixth-largest to the fourth-largest export category in Q1FY24.
Notably, the gap between electronics and gems and jewellery exports has significantly narrowed, with the electronics sector rapidly closing in on the leading position. In the first quarter, the difference was only Rs 4,660 crore, compared to the situation a year ago when it was a much higher Rs 42,449 crore. This indicates the rapid growth of the electronics sector.
The driving force behind this surge in the electronics industry is the mobile phone segment, which experienced tremendous growth following the introduction of the production-linked incentive (PLI) scheme in 2020. Over the last 15 months, mobile phones have contributed 52 per cent to the total electronics exports, amounting to Rs 30,000 crore in the first quarter of the current fiscal year. This represents a significant increase from the 38 per cent contribution seen a year ago.
Apple’s iPhones have played a dominant role in these exports, constituting 35 per cent of all electronics exports and 66 per cent of total mobile exports in FYQ1. In the June quarter, iPhone exports from India alone surpassed Rs 20,000 crore. Apple’s contract manufacturers, namely Foxconn Hon Hai, Wistron, and Pegatron, have committed to exports worth Rs 61,000 crore in FY24, showcasing the success of the PLI scheme for mobile phones.
